Wednesday, June 25, 2014
Brodrick on silver and gold
Chronicles of Brodrick - short-term gold and silver outlook. Presented for what it's worth.
Speaking of which, this isn't an inverted H&S pattern in the miners. The neckline is skewed and we're not seeing the strong volume on the right shoulder.
But it doesn't matter, because an inverted H&S is really nothing more than a transition from a lower-lows-lower-highs trend to a higher-lows-higher-highs trend. That is really all it is. I don't know why people want to see a fucking H&S everywhere; is it because they'd rather not think for themselves? Go buy a fucking tarot deck if that's what you want from life.
Oh, and by the way, check out this chart:
You'll see that here I use the EMA(10). That's because the EMA(10) governed the entire June uptrend.
A break below the EMA(10), as far as I'm concerned, means (truistically) that the lower bound governing the June uptrend has been broken. At that point you could drop to the Bollinger(20) mean, or further. But if it doesn't break, then the uptrend from June is still intact.
Looking right now at this chart, by the way, I could see the latter happening: yesterday just filled the GDXJ gap from last week. That is good, chart-watchers will take heart from that.
Though then again, a breakaway gap that sees a quick reversal is bearish.
Then again then again, the reversal might just be due to fear of another opex smackdown.
We'll see. I have a criterion for selling, that's a good thing.